Core concepts
- 01SA 300 — Planning is required throughout, not just initial activity.
- 02Audit strategy: scope, timing, direction; high-level.
- 03Audit plan: detailed; risk assessment, further audit procedures.
- 04Audit programme: list of procedures + assignment of audit staff.
- 05Materiality (SA 320): planning materiality + performance materiality.
Flowchart summary
Planning Hierarchy | Engagement Acceptance (SA 210) | Audit Strategy (SA 300) — overall | Audit Plan — risk procedures | Audit Programme — step-by-step
Exam-critical pointers
- ⭐Engagement letter (SA 210) sets terms in writing — must be obtained.
- ⭐Materiality: quantitative + qualitative — small misstatement can be material if relates to compliance/related party.
- ⭐SA 320: revised materiality if circumstances change during audit.
- ⭐Audit risk = Inherent × Control × Detection. Auditor reduces Detection Risk via procedures.
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